NEW YORK - Moody's Investors Service said it has downgraded to Aa3 from Aa2 the rating on the city of Burbank, Ill.'s general obligation unlimited tax debt. The Aa3 rating applies to $8.4 million of outstanding rated general obligation tax debt.
The outstanding bonds are secured by the city's general obligation unlimited tax pledge. The rating downgrade reflects the declining trend in general fund reserves from fiscal 2008 through fiscal 2011. Also incorporated in the rating action is the city's moderately-sized, south suburban Chicago (GO rated Aa3/stable outlook) tax base; slightly below-average socioeconomic characteristics; and a modest debt burden with rapid amortization.
